For government contractors, three words can
trigger a wave of anxiety—DCAA compliance. It’s not just
about following rules; it’s about proving you’re worthy of doing business with
the federal government. Whether you’re bidding on your first cost-type contract
or preparing for your annual audit, understanding SF 1408 and Incurred Cost
Submissions (ICS) is critical.
So, where do you start?
The SF 1408 Pre-Award Survey
Before you can win certain contracts,
you’ll need to pass the SF 1408 Pre-Award Accounting System
Survey. This isn't just a checkbox exercise—it’s the government’s way of
ensuring your accounting system can track costs, segregate direct and indirect
expenses, and support accurate billing. If your accounting software can’t walk
and talk like a compliant system, your proposal could end up in the shredder.
The Weight of Incurred Cost Submissions
Winning the contract is just the beginning.
If you’re working under a cost-reimbursement contract, you’re required to
submit an Incurred Cost Proposal (ICP) within six months of the end of your
fiscal year. The submission must detail how much you actually spent and must
align with your provisional billing rates. A misstep here—whether in your
Schedule H or a missing certification—can lead to rejected submissions, payment
delays, or even audits.
Why It All Matters
DCAA compliance isn’t just a formality.
It’s your reputation, your cash flow, and your ability to win future contracts.
And it’s evolving. With changing government regulations and scrutiny over
contractor spending, keeping up isn’t optional—it’s essential.
At DCAA Consulting, we simplify the
complexities of DCAA compliance, SF 1408, Incurred Cost Submissions. Our team of experts is here to help
your business stay audit-ready, compliant, and confident—so you can focus on
delivering value to your government clients.
